Cabinet likely to approve insurance, pension bills

04 Oct 2012 Evaluate

The government is ready to ram through the next batch of big-ticket reforms as the cabinet is likely to approve bills that would raise the cap on foreign direct investment (FDI) in insurance firms from 26 per cent to 49 per cent. Further, the cabinet in the same meeting could also deliberate upon the proposal of opening the pension sector to FDI, a controversial issue that has seen much opposition. However, the proposals if through, will come weeks after Prime Minister Manmohan Singh unveiled measures aimed at boosting government finances and attracting foreign investment to revive economic growth.

However, the second round of big-ticket policy changes planned by the government may be harder to impose because unlike foreign investment in retail and aviation, which are enacted by a cabinet decision, opening insurance and pensions requires parliamentary nod. Hence on clearance, the insurance and pension bills will be brought in Parliament in the winter session.

The proposals on FDI in pension and hike in FDI in Insurance was floated by the former finance minister Pranab Mukherjee, which was sent to the Cabinet for approval in May this year, but the decision was deferred, on account of underlying difficulty the centre faced in driving reforms. However, P Chidambaram, who took over as Finance Minister in July this year, immediately resurrected the move.

Insurance reform seems to be the need of the hour, as according to Insurance Regulatory and Development Authority (IRDA) estimates, the sector needs a capital infusion of over Rs 62,000 crore or $12 billion over the next five years. Further, domestic and foreign insurers, who have invested much money in India over the last decade, have been convincing the government for years to raise the FDI limit to 49 per cent from 26 per cent.

Moreover, the Cabinet is also likely to consider today the final draft of the Companies Bill 2011, which has been prepared after considering recommendations of the Standing Committee and comments from the finance and law ministries. The new bill, which proposes many new norms including companies' spending on Corporate Social Responsibility (CSR) activities, has been in the works for some time.

Create stable, long-term investment portfolio with strong, consistent stocks.

Start Research-backed Investing ...Now. Subscribe to Sapphire

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Fiduciary-first advisory model.
As SEBI-registered IAs, we are legally and ethically bound to act in the best interests of our clients. We do not sell or distribute any financial products. This ensures our guidance is 100% unbiased and conflict-free.
Deep fundamental research + robust valuation discipline.
Built on more than 15 years of equity research, our framework combines quality assessment, intrinsic value estimation, and a sensible margin-of-safety approach.
Process—not predictions.
We don’t rely on guesswork or market timing. Instead, we focus on asset allocation, risk management, and long-term compounding.
Technology + Human Intelligence.
We believe a combination of both is essential for investing success. We constantly innovate and upgrade in-house tools, financial X-rays, and portfolio analytics so that our team of analysts and advisors are equipped with the best.
Partner with Clients.
We follow a DIWM (Do-It-With-Me) approach where we partner clients in setting goals, financial planning, educating on our investing process and share decision-enabling resources transparently with our clients who retain control on execution.

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

Investing in stocks, mutual funds, debt, and gold
Quality-at-Reasonable-Price way of investing in stocks
Constructing Direct Stock Portfolios with Core, Booster, and Amplifier stocks
A Mutual Fund Portfolio that delivers consistent out-performance and meaningful diversification (low overlap)
Periodic review and rebalancing
Clear Buy-Sell-Hold, and Position-sizing frameworks

Name of the IA registered with SEBI:	The Alchemists Ark Pvt. Ltd.
Logo:
Trade/Brand Name of IA:	MoneyWorks4Me Investment Advisers
Brand Logo:
SEBI Registration Number:	INA000013323 Validity – May 16, 2019 – Perpetual
Registration:	Non-Individual
BSE Enlistment No:	1187
Address:	B-101, Signet Corner Building, Balewadi Phata, Baner, Pune, Maharashtra 411045
Compliance officer Details:	Name: Shrikant Jagtap Email: shrikant.jagtap@moneyworks4me.com Telephone: +919860359463 Address: Same as IA
Grievance Officer Details:	Name: Mukta Vaze Email: mukta.vaze@moneyworks4me.com Telephone: +91 98609 19463 Address: Same as IA
Principal Officer Details:	Name: Atharva Bhide Email: atharva.bhide@moneyworks4me.com Telephone: +91 91758 99463 Address: Same as IA
Standard Warning:	Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Disclaimer:	Registration granted by SEBI, enlistment with exchange and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.